PropertyShares (PS) is a specialist investment manager focused on servicing the property industry. PropertyShares structures and implements tailored financing strategies that meet the unique needs of our commercial property clients. Utilising real industry experience and a proven methodology we assist clients to optimise borrowings, equity, presales and structure loans specific to your needs.
With the ability to turn around funding in a shorter timeframe, PropertyShares welcomes the opportunity to partner with you regardless of the size or complexity of your project.
PS is a nimble capital provider that provides certainty to borrowers seeking a fast and reliable way to finance their projects. PS is structured as a managed investment scheme regulated by Chapter 5C of the Corporations Act.
Most projects are generally financed in 4 to 6 weeks upon receiving the relevant information – in some cases, PS has successfully financed projects in 2 weeks.
We accept valuations from most Bank valuers – even if instructed by the Borrower provided such valuation is in ‘reliance for a major bank’.
PS’s legal advisers can issue finance documents within 48 hours.
Importantly, PS has the resources to review and analyse transactions quickly to issue credit sanctioned term sheets in a responsive and timely manner.
PropertyShares lends from $1m to $30m per transaction for small to medium size property developers.
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PS uses ADAX (Alternative Digital Asset Exchange), a proprietary IT infrastructure system to manage its loans which can be accessed 24/7 by borrowers.
From initial drawdown through to maturity, rollover, monthly loan statements or managing their cash positions, borrowers benefit from a state of the art, end-to-end management solution that enables them to better manage their capital requirements.
Borrowers and their representatives such as: CFOs; Financial Directors and other development professionals have, at any time, instantaneous access to their projects’ loan positions, which empowers them to make flawless management decisions.
The Australian lending marketplace is incredibly concentrated and in times of tightening credit policies, the availability for borrowers (particularly property developers) to access traditional bank funding is diminished. PropertyShares provides borrowers with an alternate source of funding at competitive rates when compared with other non-traditional sources of finance.
PropertyShares is able to offer more flexible terms in relation to cross securitisation, reduced debt cover and covenants, which is priced accordingly (i.e. risk adjusted returns).
Traditional loan syndication is a cumbersome, expensive and time consuming process requiring volumes of legal documentation. As PropertyShares is the lender in all deals, the Platform provides significant efficiencies in the credit process and minimises the legal documentation required.
Non-bank finance continues to move into mainstream acceptance. Experienced property developers are learning that non-traditional financing is providing solutions for projects that were feasibly impossible with traditional financial institutions.
By issuing senior debt, direct lending funds take priority to other forms of financing such as; mezzanine loans, preferred equity or equity. Debt investing differs from equity in many ways, debt focuses on mitigating risk at every turn in order to maximise the probability of earning a fixed rate of return and receiving targeted interest returns. The real distinction is that debt investment is backed by a hard asset as collateral. When designing a real estate investment strategy, allocating the portfolio to an income-oriented product that is senior to all other positions in a capital stack is an excellent diversification tool.
The transition away from bank financing represents a permanent structural shift, and private real estate debt will gradually become a mainstream investment for many investors.
